Trade-Ideas LLC identified Dentsply Sirona ( XRAY) as a momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified Dentsply Sirona as such a stock due to the following factors:

  • XRAY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $317.3 million.
  • XRAY has a PE ratio of 35.
  • XRAY is currently in the upper 30% of its 1-year range.
  • XRAY is in the upper 25% of its 20-day range.
  • XRAY is in the upper 35% of its 5-day range.
  • XRAY is currently trading above yesterday's high.
  • XRAY has experienced a gap between today's open and yesterday's close of 0.6%.

'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.

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More details on XRAY:

DENTSPLY International Inc. designs, develops, manufactures, and markets various consumable dental products for the professional dental market in the United States and internationally. The stock currently has a dividend yield of 0.5%. XRAY has a PE ratio of 35. Currently there are 6 analysts that rate Dentsply Sirona a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Dentsply Sirona has been 1.9 million shares per day over the past 30 days. Dentsply Sirona has a market cap of $8.7 billion and is part of the health care sector and health services industry. The stock has a beta of 1.37 and a short float of 8.4% with 2.04 days to cover. Shares are up 2.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Dentsply Sirona as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The current debt-to-equity ratio, 0.49, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.44, which illustrates the ability to avoid short-term cash problems.
  • The gross profit margin for DENTSPLY SIRONA INC is rather high; currently it is at 60.08%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 8.73% trails the industry average.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • DENTSPLY SIRONA INC's earnings per share declined by 30.5% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, DENTSPLY SIRONA INC reported lower earnings of $1.76 versus $2.23 in the prior year. This year, the market expects an improvement in earnings ($2.79 versus $1.76).

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